A fixed deposit helps you direct part of your savings towards an investment that generates fixed returns that are higher than those offered by banks or recurring deposits. To make the most of this investment option, it is essential you choose a financial institution that offers high FD rates and other advantages too. To do so, weigh various financial institution offerings and select the best one as per your long term and short-term needs. This involves keeping renewal advantages in mind as well.
For instance, Bajaj Finance offers Fixed Deposits with an interest rate of up to 8.40%. In addition, this amount increases by 0.25% upon renewal. You can also avail returns as per your needs. Bajaj Finance lets you choose from cumulative and non-cumulative interest rates with its FD. The former compounds the interest regularly, and gives you the total amount as a lump sum on maturity. On the other hand, the non-cumulative option gives you payouts periodically, at an interval/frequency of your choice.
You can simplify your financial planning and ensure that you accurately forecast your future income, by using an FD calculator before you invest. Read along to know how you can do the same, and reap benefits of using the same.
Advantages of using an FD calculator
An FD calculator is easy to use and gives you quick results. This cuts down the time a manual calculation would take. Also, you can also get accurate results in the first go when you use an FD calculator. This means that you need not double-check or calculate again to ensure that you have the right numbers, a step that is necessary when you do calculations manually as you are likely to make errors.
You can also calculate various outcomes using different values of principal and tenor, and arrive at the right combination of the two by using the FD calculator. Additionally, you can look at how different interest rates affect your investment and choose the best FD interest rates using this handy tool. Accessing an FD calculator is easy too. All good financial institutions host an FD calculator on their website.
How to use a FD calculator
Using an FD calculator is easy and all you need to do is navigate to the FD calculator’s page on the financial institution’s website.
If you select Bajaj Finance’s FD calculator, then from the drop-down menu select whether you are a new customer, senior citizen, or have an existing relationship with the institution. Now proceed to select whether you want a cumulative deposit or a non-cumulative fixed deposit. Select the interest payment frequency (if you choose the latter), and the rate of interest. You will then be able to see your principal amount, maturity amount, and your interest earned. For instance, if you invest Rs. 25,000 for 12 months at 7.60% interest rate, your maturity amount will be Rs.26, 900 and your total interest earned will be Rs.1, 900. This helps you calculate what your earnings will be and plan for your future expenses with ease.
So, use a fixed deposit calculator to calculate your maturity amount beforehand to plan your finances efficiently and maximise your FD returns.